QUOTE AND NEWS
guardian.co.uk  Aug 3  Comment 
Jessica Alba’s company has come under fire recently from consumers who reported receiving severe sunburn despite Honest’s claims that it works fine Ouch! Some customers of Jessica Alba’s the Honest Company are taking to social media saying...
guardian.co.uk  Jun 25  Comment 
Group calls for introduction of one uniform measure for sun protection after survey shows misunderstanding of SPF ratings Manufacturers of sunscreen products are being urged to introduce simpler labelling after a survey revealed confusion about...
NPR  Jun 17  Comment 
Changes in sunscreen labels designed to make them clearer don't seem to be doing the job, a survey finds. Less than one quarter of people knew that SPF value relates to preventing sunburns.
Benzinga  Jun 17  Comment 
In a report published Wednesday, FBR Capital Markets analyst Patrick Kealey, Jr. put a Market Perform rating on both Standard Pacific Corp. (NYSE: SPF) and Ryland Group Inc (NYSE: RYL) after the companies announced a merger of equals. The...
TheStreet.com  Jun 16  Comment 
NEW YORK (TheStreet) -- Credit Suisse downgraded Standard Pacific to "neutral" from "outperform" on Tuesday. The analyst firm maintained its price target of $9.50 for the homebuilder. Credit Suisse said it recognizes the "strategic...
Benzinga  Jun 15  Comment 
SPF With Own ~50% & RYL ~41% Of Combine Entity © 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Red Orbit  May 13  Comment 
Shayne Jacopian for redOrbit.com - @ShayneJacopian Have you ever seen a sunburned fish? What about a lizard or frog? And when was the last time you saw a snake applying SPF 30? (…) According to findings published in eLife by Oregon...
newratings.com  Apr 30  Comment 
WASHINGTON (dpa-AFX) - Home builder Standard Pacific Corp (SPF) on Thursday reported first-quarter net earnings to equity holders of $23.9 million or $0.08 per share compared with $29 million or $0.09 per share last year. Revenues for the quarter...




RELATED WIKI ARTICLES
 
TOP CONTRIBUTORS

Standard Pacific is a geographically diversified builder of single-family attached and detached homes. The company makes money by constructing homes within a wide range of price and sizes with an emphasis on move-up buyers. Its major markets center around California, Florida, Arizona, Texas, the Carolinas, Colorado and Nevada. Standard Pacific sales are sensitive to the continued strict lending standards and the weakened housing market.

Business Growth

Sales for Standard Pacific is split in two main categories:

  • Homebuilding represents 98.7% of total net sales.
  • Financial Services represents roughly 1.3% of total net sales.

In lieu of a demand for greater liquidity, SPF was able to secure a $210 million unsecured revolving bank credit facility.[1] This was made in expectation of large land acquisitions SPF plans to make to take in the potential upside of a recovering housing market.

Trends and Forces

Home Buyer Demand is Highly Dependent Upon Resale, Rents, and Lending

Because SPF operates in the new housing development business, the price which it may set its final sale price is highly dependent upon existing houses in the market. In particular, this existing housing demand comes about two-fold; one from resale of current homes and a second from the rental sphere. Traditionally, with high lending requirements, households are forced to rent if they cannot afford to secure adequate lending without putting down a sizable down-payment. Further with a high inventory of existing homes for sale, the housing market typically soaks up those homes before builders such as SPF may come into the playing sphere. These factors ultimately put downward pressure on its revenues.

SPF is Highly Dependent upon the California Market

With over 50% of revenues coming form California, SPF is highly dependent upon housing demand in the state. However, with the state experiencing budget shortfalls and raising taxes, these factors will continue to likely lower buyer demand for new homes in California. As an opportunity though, California markets include cities that are considered "superstar" cities, or areas that tend to see generally rising house prices such as San Francisco. In these regions, the growth in house prices will prompt a healthy increase in revenues compared to other cyclical cities such as Detroit that are tied to more cyclical companies for employment such as the Auto Makers.

Competition

As a diversified home builder, SPF is competing with a wide array of other large homebuilders such as:

  • NVR (NVR) is a diversified home builder that operates differently from the traditional scope in the fact that it does not actually purchase the land it builds upon, thereby translating to higher ROAs.
  • Lennar (LEN) is homebuilder and a provider of financial services that appeals also toward the move-up market just like SPF.
  • KB Home (KBH) is a diversified homebuilder that appeals toward the more luxury end basis of home construction.




References

  1. tandard Pacific Corp. Announces New Three Year $210 Million Unsecured Revolving Credit Facility
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki